Kaizen Culture Key to Improving Logistic PracticesWed, 05/08/2019 - 16:06
Q: Ocean Network Express (ONE) resulted from the merger of three Japanese companies. What factors made this merger a reality?
A: In recent years, the container transportation segment has experienced difficulties in terms of demand and efficiency. For this reason, logistics companies NYK, MOL and K-Line decided to take advantage of their previous experience and merged to form ONE. In July 2017, the company arrived in Mexico with the goal of providing quality logistics and customer service, areas where Japanese companies are recognized worldwide.
Q: What is the scope of your operations in Mexico?
A: Our Mexico operations are equivalent to approximately 3 percent of our container operations worldwide. ONE’s participation in the global container transportation market represents about 7 percent, while our market share in Mexico is about 8 percent. Around 70 percent of our operations in Mexico are concentrated in Colima and we expect that in terms of container volume for Mexico, our operations will grow from 10 to 15 percent per year.
Q: How will the implementation of the ZEEs impact the development of ONE’s business?
A: We believe ZEEs represent one of the greatest growth opportunities for our segment. We are analyzing the possibility of enhancing our operations in the Gulf of Mexico to Europe. We hope the government strengthens other ports in the country, as well.
Q: What are the most popular destinations for Mexican exports?
A: Japan is our main destination for Mexican container exports. Our market share between Mexico and Japan is almost 12 percent, which is above our share in the world market and illustrates the strong trade relationship that exists between Japan and Mexico. Also, in Latin America we transport exports to countries such as Chile, Peru, Brazil and Argentina.
Q: Security issues have had a negative impact on logistics. How has this affected maritime freight transport?
A: Almost 60 percent of our operations in Mexico are related to intermodal transportation. Programs to protect our shipments, in which we invest considerably, are becoming more sophisticated thanks to the use of legal and insurance mechanisms that guarantee the security of our logistics.
Q: Jeremy Nixon, CEO of ONE, says the company needs to make sure innovation remains its focus. How are you accomplishing that?
A: As a logistics company, we try to continuously improve our hardware, our processes and our human talent. The entire ecosystem of our operations is backed by our Kaizen culture of continuous improvement, which helps us deliver innovation and provide greater satisfaction to our customers.
Worldwide, we have around 240 vessels operating. A large number of the vessels belong to ONE but we also work with chartered units. In Mexico, we have six services that operate from and to the country, so we collaborate with other associated operators to achieve better economies of scale. This allows us to reach more ports and commercial points more effectively. Within our portfolio, three of our six services are concentrated between Asia and Mexico for transporting cargo to and from the Pacific and South America. Also, one of our routes provides a niche trade service between Mexico, Los Angeles and Costa Rica, with the possibility of offering transshipment services to cargo coming from Asia. Our services in the Atlantic focus on Brazil, Argentina and Europe.
Q: What are ONE’s expectations for the coming years?
A: ONE has a positive view of the business opportunities in the country for the container segment. We seek organic growth in line with the economy and we believe Mexico’s strong domestic market can be part of this opportunity. Also, we would like to expand our services in the country once our brand is well-positioned and there is a commercial opportunity to explore.